Ernst: Warm Mineral Springs' rebirth

Published: Thursday, April 25, 2013 at 3:27 p.m.

Last Modified: Thursday, April 25, 2013 at 3:27 p.m.

Cypress Lending called Gene Vaccaro in 2009 to inspect one of their delinquent accounts. The national company, based in Dallas, knew of Vaccaro's work with distressed properties, and management wanted to know what they'd have on their hands if they foreclosed a property called Warm Mineral Springs.

So, Vaccaro and his wife, Elaine, threw their swimsuits and towels in the car and headed from Naples to North Port.

What they found at the springs shocked them, he says. Employees were smoking behind the counter. Yellow tape encircled the restrooms, which were out of order. The gift shop was empty. The cafe was closed. (“Thank God it was closed,” he says.) Small waterways at the entrance were clogged with algae. The fountains did not run. Rusted-out handrails led bathers to the spring-fed sinkhole.

“I'm surprised they didn't get sued every day,” Vaccaro says.

Rather than turning around and leaving, the couple agreed they'd make the most of the trip by taking a swim. They stayed for about five hours.

On the ride home, Vaccaro asked his wife for her critique. “It's the most disgusting place I've ever been to,” she said. “But, I feel better now than I have in 10 years.”

Elaine Vaccaro's reaction carried added weight because she's a kidney transplant recipient who takes 30 pills a day to keep her system in balance.

Vaccaro was impressed. He told Cypress Lending that the water was the real deal, possibly even the Fountain of Youth that Ponce de Leon supposedly sought.

We can all see what's happened afterward. Cypress Lending went full bore on restoring the property, under the guidance of Vaccaro, who has become general manager.

The list of improvements goes on and on, all accomplished with the idea of making things nicer without sacrificing the funky, Old Florida character of the early 1960s.

Mission accomplished. Visitors now encounter clean, well-kept surroundings that enhance the reputation of the springs, as well as North Port, as word keeps getting out.

Along those lines, Vaccaro has really pushed publicity, especially what he calls tank-of-gas marketing in the area from Tampa to Naples. The number of visits has jumped from 40,000 in 2009 to 119,000 in 2012, he reports. Those figures are good for comparative purposes, although they're a bit fuzzy because Vaccaro says he's distributed thousands of free passes.

Of course, Cypress Lending's $500,000 or so investment into sprucing up the springs property was not philanthropy. The company intended to sell, which it did. In December 2010, North Port and Sarasota County bought Warm Mineral Springs for $5.5 million.

The lenders wanted more, so they negotiated a 30-month management contract through which they got to keep all profits to recoup the difference. The contract ends July 1. Vaccaro says Cypress Lending has made money from the springs. He won't say how much because the company may compete for a long-term contract in which it will share profits with the city and county governments.

If Feb. 6, 2009, when Cypress Lending took over, marked a threshold for the 81-acre springs property, then this is another.

Given its positive four-year track record, Cypress Lending would be a logical partner to continue management of the springs. That doesn't mean it's going to happen.

For now, the city and county seem to be pursuing a short-term contract, no longer than a year, which does raise a few concerns, such as loss of momentum. No one will invest in improvements, or even much marketing, if they face less than a one-year time frame.

Some big expenses loom, so even keeping it simple isn't all that simple. For example, the buildings need new roofs, and the septic system does not have the capacity to handle big crowds. If we want to share the springs with the world, someone will have to pay to correct those deficiencies, either taxpayers or private investors with, for instance, 30 years to recoup their investment.

On the bright side, these are the extraneous characteristics of the property, the man-made elements that can come and go. As Vaccaro says, the water is the real deal. More than that, it's the only deal.

<p>Cypress Lending called Gene Vaccaro in 2009 to inspect one of their delinquent accounts. The national company, based in Dallas, knew of Vaccaro's work with distressed properties, and management wanted to know what they'd have on their hands if they foreclosed a property called Warm Mineral Springs.</p><p>So, Vaccaro and his wife, Elaine, threw their swimsuits and towels in the car and headed from Naples to North Port.</p><p>What they found at the springs shocked them, he says. Employees were smoking behind the counter. Yellow tape encircled the restrooms, which were out of order. The gift shop was empty. The cafe was closed. (“Thank God it was closed,” he says.) Small waterways at the entrance were clogged with algae. The fountains did not run. Rusted-out handrails led bathers to the spring-fed sinkhole.</p><p>“I'm surprised they didn't get sued every day,” Vaccaro says.</p><p>Rather than turning around and leaving, the couple agreed they'd make the most of the trip by taking a swim. They stayed for about five hours.</p><p>On the ride home, Vaccaro asked his wife for her critique. “It's the most disgusting place I've ever been to,” she said. “But, I feel better now than I have in 10 years.”</p><p>Elaine Vaccaro's reaction carried added weight because she's a kidney transplant recipient who takes 30 pills a day to keep her system in balance.</p><p>Vaccaro was impressed. He told Cypress Lending that the water was the real deal, possibly even the Fountain of Youth that Ponce de Leon supposedly sought.</p><p>We can all see what's happened afterward. Cypress Lending went full bore on restoring the property, under the guidance of Vaccaro, who has become general manager.</p><p>The list of improvements goes on and on, all accomplished with the idea of making things nicer without sacrificing the funky, Old Florida character of the early 1960s. </p><p>Mission accomplished. Visitors now encounter clean, well-kept surroundings that enhance the reputation of the springs, as well as North Port, as word keeps getting out.</p><p>Along those lines, Vaccaro has really pushed publicity, especially what he calls tank-of-gas marketing in the area from Tampa to Naples. The number of visits has jumped from 40,000 in 2009 to 119,000 in 2012, he reports. Those figures are good for comparative purposes, although they're a bit fuzzy because Vaccaro says he's distributed thousands of free passes.</p><p>Bottom line, Cypress Lending deserves credit for helping preserve the state's only warm-water springs, which has historical, archaeological, environmental and health significance.</p><p>Of course, Cypress Lending's $500,000 or so investment into sprucing up the springs property was not philanthropy. The company intended to sell, which it did. In December 2010, North Port and Sarasota County bought Warm Mineral Springs for $5.5 million.</p><p>The lenders wanted more, so they negotiated a 30-month management contract through which they got to keep all profits to recoup the difference. The contract ends July 1. Vaccaro says Cypress Lending has made money from the springs. He won't say how much because the company may compete for a long-term contract in which it will share profits with the city and county governments.</p><p>If Feb. 6, 2009, when Cypress Lending took over, marked a threshold for the 81-acre springs property, then this is another.</p><p>Given its positive four-year track record, Cypress Lending would be a logical partner to continue management of the springs. That doesn't mean it's going to happen.</p><p>For now, the city and county seem to be pursuing a short-term contract, no longer than a year, which does raise a few concerns, such as loss of momentum. No one will invest in improvements, or even much marketing, if they face less than a one-year time frame.</p><p>Some big expenses loom, so even keeping it simple isn't all that simple. For example, the buildings need new roofs, and the septic system does not have the capacity to handle big crowds. If we want to share the springs with the world, someone will have to pay to correct those deficiencies, either taxpayers or private investors with, for instance, 30 years to recoup their investment.</p><p>On the bright side, these are the extraneous characteristics of the property, the man-made elements that can come and go. As Vaccaro says, the water is the real deal. More than that, it's the only deal.</p>